Mission of the People's Republic of Chin

to the European Communities

BI WAI FA No. 240/97

The Mission of the People's Republic of China to the European Communities presents its compliments to the Conference of the Presidents of the European Parliament and, with reference to the relevant lines affecting China in the Budget of the European Union for the 1998 Financial Year (hereinafter referred to as the Budget), has the honor to state its position as follows:

On 18 December 1997, the European Parliament adopted by second reading, the Draft General Budget of the European Union for the 1998 Financial Year which consisted of two amendments namely Line B7-6601 under the title "Cooperation agreements with third countries" and Line B7-706N under the title of "Human rights and democracy in Asian countries".

It is known to all that there is only one China in the world; Taiwan is an inalienable part of China's territory; and the Government of the People's Republic of China is the sole legitimate government representing whole China. However, as an official document of the European Union, the Budget refers to Taiwan as "the Republic of China". Moreover, an appropriation of Ecu 1,600,000 is provided to cofinance the external actions with "the Republic of China". This is an open attempt to create "two Chinas" or "one China, one Taiwan", which not only runs counter to the long-held position of the European Union but also seriously violates the principles for the establishment of China-EU diplomatic ties and the basic norms governing international relations. Under the pretext of promoting China's democracy and human rights, the Budget supports and finances the separatist forces of Tibet, Xinjiang and Inner Mongolia, and it refers to the Xinjiang, Autonomous Region of

China as "Eastern Turkestan" which constitutes gross interference in China's internal affairs. In disregard to the repeated representations of the Chinese side, the European Parliament insisted on reinstating and adopting the above-mentioned contents on China which were modified by the Council of the European Union in its second reading. The Chinese side hereby expresses its strong, dissatisfaction and firm opposition.

At a time when the overall China-EU relations are enjoying a good momentum of development, which is in the fundamental interests of both sides, we hope that the European Parliament will set store by the large interest of China-EU relations and follow this trend of development instead of further undermining the bilateral relations.

It would be appreciated if the Conference of the Presidents could kindly communicate the above position of the Chinese side to the political groups and relevant committees of the European Parliament.

The Mission of the People's Republic of China to the European Communities avails itself of this opportunity to renew to the Conference of Presidents of the European Parliament the assurances of its highest consideration.